British families need £25,000 just to survive

The average UK family now needs to bring home £24,800 a year just to break
even, an increase of £130 compared to last year's cost of living.

Even though the study - which analysed the spending habits of 2,000 UK parents with at least two children living with them - found that some general bills and expenses had decreased, there was an overall increase of £129.35 in the outgoings of the average family compared to 2011Photo: ALAMY

These latest figures show the cost of living has risen yet again, and the majority of people in the UK are still struggling to keep their heads above water. The figure of £24,801.51 was calculated using mortgage or rent payments, utilities, insurance, food shopping and motoring, plus the cost of dressing a family, owning a mobile phone and landline, travelling to and from work and maintaining a property.

However, this total sum amount does not include any luxuries whatsoever, so those families looking to treat themselves will have to dig deeper to meet the cost of treats such as takeaways, restaurant meals, nights out, weekends away and holidays.

Even though the study - which analysed the spending habits of 2,000 UK parents with at least two children living with them - found that some general bills and expenses had decreased, there was an overall increase of £129.35 in the outgoings of the average family compared to 2011.

The weekly food shop bill has risen by £33, which averages at around £ 4,491 a year, or £86 a week. Commuting to and from work has placed an increasing strain on family finances, as workers have seen this rise by £216 - an average spend of £2,672 every year.

Petrol price hikes mean it's no surprise that the price of filling up the family car has risen by £215, and now comes in at £51 a week, or £2,668 a year. The cost of Sky or cable TV subscriptions, along with a TV licence, comes in at an average of £654 a year, a figure which has increased by £77 since 2011.

Home insurance premiums rose by £11 to £443 a year, and mobile phone bills shot up by £27, costing an average of £395 per year. Utility bill expenditure was the only figure that remained the same as it was in 2011, at £1,283 for a year.

Andrew Barker, managing director of Skipton Financial Services, said: "It is easy to understand why the large majority of Brits are so cash-strapped. While there has been some change in spending habits this year compared to last, families are still paying out almost as much money on the food shopping as they are on their mortgage payments.

"Don't forget that £24,801.51 is the figure UK families need to bring home so, once income tax and national insurance has been taken into account, the basic rate taxpayer would actually have to earn well over £30,000."

The research found that mortgage repayments, which average £4,515 a year, were down from £215 last year and the amount needed to pay off credit card bills and loans was down £225. The average amount needed to pay car insurance, tax and roadside assistance was down £17, and council tax payments were down £39.

Mr Barker added: "When we first carried out this research last year, we knew that people were feeling the pinch, with inflation riding high at 5pc and savings accounts paying rock-bottom rates. However even we were surprised that families needed to bring home almost £25,000 just to stand still.

"Unfortunately, despite inflation now nearer to the Government's 2pc target, many families are still in exactly the same position as a year ago, with almost 60pc saying they have less disposable income than last year.

"Given this it is maybe not surprising, but nevertheless still worrying, that a third of respondents say they do not have a savings account and, of those that do, only one in five are managing to save more each month than last year.

"It seems that there is no end in sight for many families, with six out of 10 believing they'll end up paying out even more money on bills next year and with only one in 10 expecting to be less cash strapped in 2013 than in 2012."